Trading Update and Strategic Growth Opportunities

THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION AS DEFINED IN ARTICLE 7 OF THE MARKET ABUSE REGULATION NO. 596/2014 AS IT FORMS PART OF UK DOMESTIC LAW BY VIRTUE OF THE EUROPEAN UNION (WITHDRAWAL) ACT 2018, AS AMENDED ("MAR"). UPON THE PUBLICATION OF THIS ANNOUNCEMENT, SUCH INSIDE INFORMATION IS NOW CONSIDERED TO BE IN THE PUBLIC DOMAIN. 

1 June 2026

RentGuarantor Holdings PLC

(the "Company" or "RentGuarantor" and including its subsidiaries, the "Group")

Trading Update and Strategic Growth Opportunities

RentGuarantor (AIM: RGG), a leading provider of rent guarantee services, which includes property protection, to tenants and landlords in the UK¹ private rental sector, is pleased to provide an unaudited trading update covering the period 1 January 2026 to 31 May 2026, and to outline its proposed investment in Artificial Intelligence (AI) to support its growth and the launch of a new service offering.

Trading performance

·    Contract growth and value uplift

The number of contracts executed by the Company over the five-month period has risen year on year by 127%, while the average value of new contracts secured from January 2026 to date has risen significantly at approximately 12% versus the same period in 2025, as a result of moving up the rental value scale. This increase in volume is principally driven by stronger demand from both existing partners and a stream of new partnership wins. The Company's penetration into the rental market is accelerating and the Board expects this to positively impact the Group's financial outlook for FY 2026 and FY 2027. 

·    Recent revenue performance and positive monthly EBITDA

The Renters' Rights Act 2025 (the "Act") came into force on 1 May 2026. The Company has been anticipating the Act to cause a structural shift in demand for rent and property damage guarantees in the UK. In May 2026, the Group delivered record unaudited revenue of c.£700k during the month - a significant increase of approximately 115% compared to the average monthly revenue of c.£325k during the first four months of the year. This was driven by a material uplift in new guarantee issuances and higher adoption of the Company's solutions across core customer segments within the private rental sector. Total unaudited revenue for the period 1 January 2026 to 31 May 2026 increased 155% to c.£2 million (1 January 2025 to 31 May 2025: c.£0.78 million).

Given the Company's current revenue pipeline expectations, driven by the structural shift in the market and strong customer engagement and the expected contribution from its new service Offering, the Board expects similar levels of revenue performance to continue into the second half of 2026 (H2 2026), which would result in revenue for the financial year ending 31 December 2026 (FY 2026) being materially above market expectations².

The strong revenue growth has resulted in the Group recording in May 2026 its first positive monthly EBITDA since its admission to trading on AIM, well ahead of the Board's expectations, with expenditure expected to remain broadly in line with the budget for the full year. As a result, the Board currently expects for the Group's operating result for FY 2026 to be within the market expectations³ range for the period.

Strategic investment in AI

To meet anticipated volumes and to maintain service quality and risk management standards, without the need for the operational headcount to grow proportionally, the Company is accelerating its investment in automation and AI, as first announced on 27 February 2026. Planned actions include:

·   fast-tracked deployment of AI-enabled rent guaranteeing through our existing systems and document processing tools with the aim of increasing throughput and reducing manual intervention;

·   targeted hiring in data science and engineering to integrate AI safely and effectively, in line with the Company's governance and compliance frameworks; and

·    upgrading IT infrastructure to ensure resilience and scalability.

The Board believes that the planned expenditure in H2 2026 and into FY 2027, as above, can be funded from the Group's existing resources and the expected increasing working capital achieved on the back of the strong expected revenue, and is necessary to sustain scalable growth, protect margins, and enhance customer experience. This expenditure is expected to deliver operational efficiencies and improved unit economics for FY 2027, with an anticipated annual contract processing capability target of approximately 20,000 rising to a processing capacity of approximately 100,000 contracts per annum in the medium to longer term.

The Company's AI strategy is being led by Professor Dave Cliff, Non-Executive Director of RentGuarantor and a Professor of Computer Science at the University of Bristol. He previously worked at the Massachusetts Institute of Technology in the Artificial Intelligence Laboratory, and as an Industrial Researcher for Hewlett-Packard and Deutsche Bank.

Launch of enhanced service offering

Further to the Company's announcement dated 26 February 2026, RentGuarantor has launched a new enhanced service offering (the "Offering"). The Offering combines the Company's existing professional guarantor service with a guarantee against damages of up to two months' rent, creating an enhanced solution for both landlords and tenants under a licence agreement provided by myDeposits, one of three Government-approved agencies for deposit protection.

The Offering provides protection in respect of both rental payments and eligible property damage, with no fee payable by the landlord. For tenants, it removes the need to provide a traditional cash deposit upfront, allowing them to retain control of funds that would otherwise be tied up for the duration of the tenancy. This can be particularly beneficial when securing a new property, where a further deposit may be required before any monies from a previous tenancy have been returned.

The Board believes that the nature of the Offering, together with its benefits to both tenants and landlords, will, upon full implementation, positively impact revenues.

Outlook

The Board expects the stronger trading momentum seen in May 2026, following the introduction of the Act, to continue through H2 2026, supported by:

·   robust pipeline conversion and an expanded sales funnel, supported by a circa three-fold increase in daily applications in May 2026 versus May 2025;

·    investment in AI, technology and marketing ahead of the planned rollout of the enhanced service Offering to equip the Group with the capacity to meet the expected volumes in FY 2027;

·    the rollout of the Offering; and

·    increased visibility of a positive EBITDA for 2026.

Paul Foy, CEO of RentGuarantor, commented: "The Company's performance in May 2026 marks a clear shift in demand for our professional guarantor service. The structural changes to the sector resulting from the Renters' Rights Act are driving sustained growth across our core customer segments and reinforcing the relevance of our solution.

"I am also pleased to have officially launched our expanded service Offering, now including the ability to settle property damages, which I believe is a critical step in positioning RentGuarantor as a comprehensive service that simplifies the core aspects of securing rental accommodation in the UK.

"In light of these advancements, we are moving quickly to scale capacity through our planned investment in AI, spearheaded by our in-house expertise, so that we can sustain this growth without compromising the high standards of service and risk management that underpin our business model, together with the potential appointment of additional Board members during the current year.

"We are confident in the Group's prospects for the remainder of 2026, and I look forward to updating the market on our progress in due course."

Notes

This trading update contains forward-looking statements which are based on current expectations and involve risks and uncertainties. Actual results may differ materially. Nothing in this announcement should be taken as a profit forecast.

A further trading update as part of the Company's half-year results for the six months ending 30 June 2026 will be announced in due course.

To engage with this announcement on our Investor Hub, please use the following link: https://investorhub.rentguarantor.com/link/PQRGVy

For more information, please contact:

About RentGuarantor 

RentGuarantor provides a rent guarantee service to tenants wishing to rent property in the UK¹ from the Private Rental Sector("PRS"). It is an online service where applications are managed on a secure and bespoke digital platform designed and built by the Company. The goal is to make the process as simple as possible, with applications only taking a few minutes and RentGuarantor seeking to complete the application on the same day.

¹ Currently excluding Northern Ireland.

² Management understands that market forecasts immediately prior to the release of this announcement for revenue were in the range of approximately £4.6 million to approximately £4.8 million. 

³ Management understands that market forecasts immediately prior to the release of this announcement for adjusted operating losses/profits were in the range of approximately £0.5 million operating loss to approximately £0.3 million operating profit.